IR Quiz 3

STUDY

PLAY

are sets of rules, norms, and procedures around which the expectations of actors converge in a certain issue area.

With respect to international regimes, which of the following is true?

B) International regimes coordinate the behavior of states to assist them in overcoming collective goods problems.

international regimes

are stronger when embedded in permanent institutions

when a broad grouping of major actors comes together to jointly oppose another actor's aggression, this is known as

collective security

the success of collective security depends on

members keeping their commitments to the group and members agreeing on what constitutes aggression

feminists argue that with respect to IR

feminity is associated eith private and domestic areas, whereas masculinity is associated with political spaces

some ______ feminists believe that there are real differences between the genders based on their biological essence, whereas _____ feminists believe that men and women are equal

difference, liberal

_____ feminists find important differences between men and women that are arbirtary and flexible, whereas _______ feminists consider those differences trivial

postmodern, liberal

difference feminists argue that realism involves assumptions of masculinity because of the principle of

seperate autonomous actors, alliances that are not permanent, pursuit of national interest, anarchic international politics and ordered domestic politics (all of the above)

an international system based on feminine principles would include which of the following characteristcs

responsibility of the people to care for each other regardless of national borders

with respect to the impact of gender on war and peace, difference feminists believe that

women are inherently more peaceful than men

liberal feminists

believe that female leaders are no more peaceful than male leaders, believe that female state leaders are no less committed to state soverignty and territorial integrity than male leaders, would like to see more women involved in foreign policy making and the military, believe that no distinctly feminine feature of their behavior in their office distinguishes female leaders from their male counterparts (all of the above)

with respect to women in the military

the evidence suggests that they perform comparably to men in a variety of roles

in order for women to have a profound influence on IR

they need to participate in key foreign policy positions in large numbers around the world

what is NOT a critique of realism from the postmodern perspective

international institutions are important actors in IR

for postmodernists, the breakup of the Soviet Union into 15 soverign states is evidence of a problem with which belief of realists

states have universal interests

when postmodernists "deconstruct" realism, what do they find missing from its accounts of IR

the roles of individuals and multinational corporations and the role of domestic poltics and the experiencs of poor countries (B and C)

postmodern feminists

do not believe there is any fixed, inherent meaning or essence in the female gender

consideration of the role of sexual drives in decisions about the use of th force is characteristic of

postmodern feminism

peace studies focuses on which levels of analysis

individual, domestic, and global

the glorification of war and military force, and the structing of society around war is known as

militarism

positive peace

resolves the underlying reasons for war

proponents of positive peace call for

an end to strucutral violence, alternatives to war as a method for conflict resolution, the development of a gloval identity transcending national, ethnic, and religious divisions, strengthening norms against the use of violence (all of the above)

with respect to the US peace movement since WWI

an internationalist wing has seen international organization as the best hope for peace and has supported wars against aggression, whereas a pacifist wing has opposed all wars and favored more radical social change to achieve positive peace

the first attempt at creating a collective security system was the

League of Nations

when women won the right to vote after WWI

they generally voted like their husbands

conflict resolution

refers to the development and implementation of peaceful strategies for settling conflicts and is used more often and is more successful in the post-Cold War period (A and B)

with respect to conflict resolution

arbitration is when a mediator listens to each side's ideas and presents them in a way the other side can hear

constructivism

is interested in how actors define their national interests threats to those interests and their relationships to one another, relies heavily on international norms and their power to constrain state actions, examines how states' interests and identites are intertwined, contends that over time states can conceptualize one anothe in such a way that there is no danger of a security dilemma or arms race (all of the above)

how can liberal theories of IR be distinguished form realism

realists see the rules of IR as timeless and unchangin, whereas liberal theorists see the rules of IR as evolving incrementally

which of the following is NOT an explanation by Immanuel Kant of how peace and cooperation are possible

international regimes can solve the collective goods problem by increasing transparency

Marxist approaches to IR hold that both IR and the domestic politcs arise from unequal relationships between

economics classes

Marxism

argues that the more powerful classes oppress and exploit the less powerful by denying them their fair share of the surplus they create and was oriented toward domestic society in the industrializing countries of Marx's time (A and B)

How can one distinguish between difference and liberal feminism

difference feminists believe that individual women in foreign policy and the military differ from their male counterparts, whereas liberal feminists believe women as a group do not differ

which of the following is true

democracies almost never fight each other

the theory of imperialism that argued that European capitalists were investing in colonies where they could earn big profits, and then using part of those profits to buy off the working class back home, was developed by

Lenin

tit for tat is

a strategy of strict reciprocity after an initial cooperative move

foreign policy

is the strategy used by governments to guide their actions in the international arena and emphasizes the individual and domestic levels of analysis (A and C)

the sequence of steps in the rational model of decision making is

clarify goals, order goals by importance, list alternatives to achieve goals, investigate consequences of alternatives, and choose the course of action

which of the following complicates the rational decision model of decision making

uncertaintiy about the costs and benefits of a particular action

which of the following is NOT consistent with the activies pursued in the process of rational decision making

satisficing

the _____ model of decision making relies on standard operating procedures

organizational process

the ____ model of decision making consists of negotiations between bureaucratic agencies with divergent interests

government bargaining

decisions of individuals can most frequently diverge from the raional model because of

information screens and affective bias

______ refers to the emotions felt by decision makers when they consider the consequences of their actions

affective bias

____ refers to the limitations of the human brain in making choices

cognitive bias

cognitive balance, or the maintence of a logically consistent mental model of the world, can be achieved through

wishful thinking

according to the concept of bounded rationality

decision makers will choose a response taht is good enough to meet some minimal criteria

individual decision making

cannot be perfectly rational because of the different values, goals, and perceptions of decision makers and is influenced by the dyanimcs of groups surronding the leader (B and C)

groups in foreign policy decision making

promote rationality in decision making and introduce new sources of irrationality in decision making (A and B)

____ is the tendency for groups to reach decisions without accurately assessing their consequences, since individual members tend to go along with ideas they think others support

groupthink

which of the following is NOT an aspect of the structure of a group's decision-making process that can affect the outcome

meeting time

a crisis is a foreign policy situation characterized by

severe time constraints and decison makers under stress

actors in domestic politics involved in the foreign policy process include

interest groups, the media, bureaucracis, legislatures (all of the above)

diplomats

work in embasies and consulates abroad

with respect to the roles of bureacratic agencies in foreign policy making

bargaining amont agencies suggests that a state does not have a single national interest

among the interest groups that lobby governments on foreign policy issues are

typicall starts high and decreases over the long run and will tend to improve the popularity ratings of a countries leader (B and C)

the Iran-Contra Scandal resulted from the activities of which govenment agency

the National Security Council (NSC)

a kitchen cabinet is

a trusted group of friends with no formal positions in the government who discuss policy issues with the leader

politicians have a difficult time running formal bureacratic agencies becaus

the agencies can be too large and too routinized to easily control and lower-level career officials may not owe loyalty to the politicians (A and B)

the part of the population that stays informed about international issues is called the

attentive public

diversionary foreign policy is

adopting a foreign policy to distract public attention from domestic issues

on what principle do most constructivist explanations draw

identity

with respect to women in politics

the number of women serving in legislatures is increasing

____ is defined as a difference in preffered outcomes in a bargaining situation

conflict

on the individual level of analysis

wars may be the result of rational decisions of national leaders and wars may be the result of deviations from rationality by national leaders (A and B)

which of the following is NOT a possible cause of war on the domestic level of analysis

aggression of leaders

theories of the causes of war at the interstate level of analysis

include that war occurs when power is relatively equally distributed and a rising power is threatening to overtake a declining one

which of the following is NOT a tangile interest over which conflict might occur

religious differences

the value states place on home territory

is far beyond any economic or strategic value it holds

since WWII, an international norm has developed

against attempting to alter borders by force

____ is the regaining of territory lost to another stat

irredentism

successionist movements

are rarely successful, sometimes want to merge their territory with a neighboring state, are treated as domestic problems that are of little concern to other states, attempt to draw intenational borders around a province or region to create a new state (all of the above)

the breakup of multi-national states was peaceful in which instance

Czechoslovakia and Serbia and Montenagro (B and C)

interstate border disputes remain today in

Kashmir, the Middle East, and Japan/China

control of the _____ Islands in the South China Sea is a source of conflict among several countries

Spratly

which of the folllow ing NOT a reson why the control of small islandss causes serious interstate territorial disputes

they can add to the overall size of the country

territorial waters traditionally are recognized to extend how far from a state's coastline

three miles

a state's exclusive economic zone (EEZ) is recognized to extend how far from the coast line

200 miles

states can exclude others from entering which of the following

12 mile limit from the coast line and airspace (A and C)

with respect to the conflict regarding control of governments

one state may attempt to exert influence on another state's elections

during the Cold War, the Soviet Union actually invaded ____ to change its government

Czechoslovakia

which factor contributes to determining whether or not economic conflict leads to violence

the use of violence would diminish the profit of economic transactions more than could be gained by such violence

economic conflicts affect international security insofar as

they derive from competition over strategic minerals, economic growth leads to geographic expansion as a state pursues natual resources beyond their borders, they concern technology transfar of high-tech weaponry, they involve the capacity to produce and trade military equipment (All of the Above)

why is drug trafficking considered an international security issue when other types of smuggling are not

share ancestral, language, cultural, or religious ties and a common identity and come into conflict because they hate each other (A and B)

ethnic conflict is closely tied to conflict over

territory

examples of conflict resulting from states worrying about the fate of members of the same ethnic group living as minority in a neighboring state are

Albania-Serbia and Armenia-Azerjaijan

the tendency to see one's own group in favorable terms and other groups in unfavorable terms is

ethcnocentricism

religious conflicts are difficult to resolve because

religions deal with core values that are held as absolute truth

Islam has played a role in many recent conflicts because

it is predominant in an area of the world where geographical and historical circumstances encourage conflict

Islamic movements have gained strength in recent years in which of the following states

Afghanistan and Algeria

ideology

intensifies conflicts between states more than it causes them, helps mobilize national populations to support a state in its international dealings, tends to decline in importance after a revolution replaced by national interests, has a weaker hold on core values and absolute truth than religions do (all of the above)

____ war is a war over control of the entire world order, whereas ____ war is warfare by one state eaged to conquer and occupy anoter

hegemonic, total

the goal ____ war is to force the surrender of the enemy's government and replace it with one of the victor's choosing

total

WWII is an example of

hegemonic war

military action carried out to gain some objective short of the surrender and occupation of the enemy is ____ war, whereas war between factions within a state trying to create, or prevent, a new government for the entire state of some part of it is ____ war

limited, civil

warfare without frontlines involving irregular forces is called

gurilla war

which of the following is characteristic of guerilla war

civilians are often punished along with guerilla forces because the two cannot be distinguished

a line of control divides the province of Kashmir, which is the focus of a long-running dispute between which two countries

India and Pakistan

with respect to international conflicts over the control of governments and territorial disputres, which of the following is NOT true

they are less likely to lead to the use of violence than other types of conflicts of interst

nationalism

contributed to the disintigration of large, multinational states like Austria-Hungary

with respect to self-determination, which of the following is FALSE

all nations desired self-determination have acheived it

which of the following is NOT a challenge associated with the transition from war to peace

representation in regional and international organizations

with respect to international norms against genocide

they were weaker than norms of state soverignty in the case of Darfur

which of the following statements about Islam is FALSE

Sunni and Shi'ite Muslims cooperate and are unified under the Islamist movemnt

Shi'ite Muslimslive predominantly in

Iran, southern Iraq, and southern Lebanon

Sunni Muslim fundamentalists include

the Taliban in Afghanistan, the al Qeada terrorist group, Hamas in the Palestianan territories, Chechens who have tried to split away from Russia (all of the above)

the choices about military capabilites that leaders have to make include

how much to spend on military capabilities, what types of missions a country's military forces must be able to carry out, what types of forces to have, what military equipment is necessary (all of the above)

with respect to conventional forces, all of the following is true EXCEPT

electronics, especially radar, is relied on most by artillery

which of the following is NOT provided by satellites

attack capabilites

in what way have technological developments changed the nature of military forces

the resort to force now has more profound costs and consequences, military engagements now occur at greater distances, electornics now have a greater role in command and control, and enemy computer networks are increasingly targeted by military forces and terrorists (all of the above apply)

weapons of mass destruction include

nuclear, chemical, and biological weapons

fission weapons are also known as ____, and fusion weapons are also known as _____

atomic bombs, hydrogen bombs

which of the following is a fissionable material

Uranium-235 and plutonium (C and D)

the major difficulty in building a fission weapon is that

fissionable material is very difficult to aquire

____ weapons have more explosive power but are more expensive to design and build than ____ weapons

which of the following countries has built up the infrastructure to enrich uranium up to weapons grade in recent years

North Korea and Libya (A and B)

the main difference between war and classic terrorism is

the form has military targets, whereas the latter has civillian targets

which of the following is characteristic of terrorism

the primary effect of terrorism is psychological

the use of terrorist groups by states to achieve politcal aims is

state-sponsored terrorism

all of the following are true about counterinsurgency EXCEPT

it is less widespread than during the Cold War

piracy has become a problem in what region of the world

South of the Cape of Good Hope Near South Africa

with respect to terrorism, which of the following is true

terrorists are more willing than states are to violate the norms of the international system because unlike states they do not have a stake in that system and terrorist activiesi do not reliably achieve politcal ends (B and C)

which of the following is NOT considered to be a sponsor of international terrorism according to the UNited States

North Korea

In Rwanda in 1994, members of the minority ___ ethnic gropu were massacred by members of the majority ______ ethnic group

Hutu, Tutsi

what action did Kosovo take in 2008 that did not have the approval of the UNited nation

declared independence from Serbia

how does liberalism compare with mercantilism

liberalism is not concerned whether one state gains more or less than another, just whether the state's wealth is increaing in absolute terms, whereas mercantilism empahsizes that each state must protect its own interests at the expense of others

when states specialize in producing the goods that they produce best and trading for goods that other states are better at producing they are operating according to

comparative advantage

which of the following is a drawback of international trade

disruption in the workforce, capital is not easily converted to new uses, there is an unequal distribution of costs and benefits within states, there is an unequal distribution of costs and benefits between states (all of the above)

which of the following is NOT characteristic of centrally planend econmies

they were dominant in African during the Cold War

state-owned industries are evidence of

command economies and mixed economies (A and B)

in what ways can politics influence markets

through taxations and application of sanction

a financial statement of the difference in the value of a country's total exports and imports is known as

balance of trade

a state that avoids trading altogether and instea tries to priduce everthing it needs by itself is following a strategy of

autakry

which of the following is NOT a reason states to decide to protect domestic industry

to increase the volume and value of imports into the country

when a product is sold in foregin markets at prices below the minimum level necessary to make a profit, this is known as

dumping

a tariff is

a type of tax imposed on imports by a state

a unilateral method of protecting producers from foregin competition by imposing a limit on the maximum volume of allowable imports is known as

quota

tax breaks, loans, and guaranteed high prices are examples of what type of proectionism

subsidies

protecionism hurts and economy in which of the following ways

conusmers ususally pay higher prices for the product and dmoestic industries may avoid needed improvements and remain inefficient and uncompetitive (A and B)

when industries seek to influence a state's foreign economic policy

they often face other industries with different goals

copyrights, trademarks, and patents are

subject to piracy and referred to as intellectual property (A and C)

major actors in trade negoations regarding agriculture are

the United States and Fracne

trade in services includes

banking and insurance

the leading arms importing region of the global South

the MIddle East

enforcement of trade agreements

takes place under universal agreement on what is fair trade

retaliation for cases of dumping usually comes in the form of

tariffs to raise the price back to market levels

the World Trade Organization replaced the ___ in 1995

General Agreement on Tariffs and Trade (GATT)

the principle that whatever one WTO member-state lowers tariffs on certain kinds of imports from another member-state, all member-states are entitled to the same treatmetn with regard to their goods is known as

most-favored nation principle

the current round of multinational trade negoationas, which began in 2001 and is strugging to reach a conclusion, is the

Doha Round

multinational trade negotations are shifting focus from

manufactured goods to agricultual goods

the most important regional free-trade area is in

Europe

cartels

form to manipulate the price of a certain prodcut, usually are formed by producers, most often limit production by each member so as to lower supply, can suffer from serious collective goods problems (all of the above)

the most prominent cartel in the inetantional economy is

OPEC

the country which has used its large supply of oil to ensure the fucntioning of OPEC is

Saudi Arabia

groups that oppose free trade because of its negative impacts includ

labor and environmental groups

during the cold war, most centally planned economies were found in

the former Soviet Union and Eastern Europe

in a(n) _____ there is just one supplier of a product, where as a(n) ___ there are just a few large suppliers

monopoly, oligopoly

with respect to deficits, which of the following is true

a state can have a trade dificit without having a budget deficit

the intergovernmental organiztion that attempts to regualirze patent and copyright law across borders is the

WIPO

which of the following topics is NOT on the agenda of the Doha Round of WTO trade negotations

electornics

the industrial revolution began in

Britain, in the 18th century

by the begninning of the 20th century, _____ replaced ____ as the state with the world's largest and most advanced economy

the UNited States, Britain

which of the following did NOT contibute to the industrialization of the United State

conversion from imported oil to domestic coal as a primary energy source

which of the follwing is true about the capitalist world economy immediatly after WWII

the US provided massive assitance to rebuild Western Europe and Japan

for centuries, the gloval currency that had value in all countries was

preceious metals

the exchagne rate it

the rate at which a state's currency can be exchanged for a differnt state's currency

why would one not want to hold the currencies of paricular coutnries

they may be losing their value rapidly due to inflation and one may not be able to trade it for another currency (B and C)

a hard currency is

readily converted into leading world currencies

if a national currency is convertible, this means

it can be exchanged for another currency

____ exchange rates exist when a government establishes official ranges of exchange for their currency, whereas ___ exchange rates exist when exchange rates are determined by global currency markets

fix, floating

governments intervene in currency markets

to buy a currency, which increases the value of that currency

devaluation of one's currency tends to

reduce the trust people place in the currency

what is common interest of states with respect to currencies

stability an exchange rates, so the speculators do not profit at the expense of central banks

central banks in industrialized countries

maintain the value of the state's currency by limiting the amount of money printed and by preventing high inflation and work together to intervene in currency markets (B and C)

the interest rate the government charges when it loans money to private banks is known as the

discount rate

with respect to the decisions of the Federal Reserve, which of the following is FALSE

other states' monetary policies do not affect the decisions of the Fed

the system established after WWII to manage international monetary relations was the

Bretton Woods system

How does the IMF compare to the World Bank

the IMF coordinates international currency exchange, whereas the World Bank provides loans to aid in the reconstruction and economic development of countries

the IMF established ____ as the replacement for gold as the world standard

Special Drawing Rights

How does the IMF assist countries in balancing their economies

by allowing states to borrow against their deposits of financial reserves and repay the loans in subsequent years

the IMF and the World Bank use a ____ system

weighted voting

which of the following has NOT been a mission of the IMF and the World Bank

helped China develop export markets

the summary of a state's financial transactions with the rest of the world, including trade, foreing aid, and the remittance of income by citizens employed abroad is known as

balance of payments

which of the following is a reason states go into debt

a trade deficit and people and firms living beyond their means (A and B)

how is monetary policy distinguished from fiscal policy

monetary policy is goverment decisions about printing and circulating money, whereas fiscal policy is government decisiosn about spending and taxation

the most imporant types of multinationa corporations are

industrial corporation

the role of multinatioal corporations in international political relations is one wher

they are agents of their homw national governments, national governments are agents of MNCs, they are citizens of the world beholden to no government, MNCs have cler national identites (any of the above, depending on your view)

the targets of most of the direct foreing investment in the world ar

western industrialized states

a state in which a foreign MNC operates is called the ______ whereas the stae where the MNC has its headquarters is called the ______

host country, home country

MNCs and thr countries in which they invest often come into conflict over

distribution of the new wealth generated and trade policy

NCs and the countries in which their headquarters are located come into conflict over

taxation and trade policy

what is the international buisness environment most condusice to the creation of wealth of MNCs

one of stable international security

which of the following helps contribute toward a positive balance of payments for a country

a country recieving large amounts of foreign investment funds

___ goods are products that can be used as inputs for further production

capital

the largest default in IMF history was made by

Argentina

what is a major finincial issue that China will have to deal within the coming years that forces the country to choose between continued economic growth and better relations with trading partner

the degree of float of its currency

efforts to unfairly capture a large share of the world markets or even near monopoly so taht eventually a compant or state can raise prices without fearing competition are known as

predatory practices

which of the following is a challenge to creaing free trade in Asia

the region consists of both very rich and very poor states and the region consists of democracies, dictatorships, and communist states (A and B)

1. _____ is the right to vote

suffrage

2. _____ was the national security advisor and then the secretary of state for President George W. Bush.

Condolezza Rice

3. Poverty, hunger, and oppression are forms of _____ because they are caused by the framework of social relations rather than by direct actions.

structural violence

_____ results in a decision binding on parties.

arbirtation

5. A(n) _____ distrusts IGOs and favors radical social change.

pacifist

6. _____ is the subconscious effort to make the world match a logically consistent mental model

cognitive dissonance

7. When two sides in a conflict maintain very similar enemy images, often reversed, of each other, this is known as _____.

mirror image

8. A(n) _____ is a coalition of people who share a common interest in the outcome of political issues and try to influence the outcome.

interest group

9. The part of the population that stays informed about international issues is the _____.

attentive public

10. The _____ is the movement of people back and forth between top-level government and industry jobs.

revolving door

11. _____ is the public promotion of policy or belief.

propaganda

12. Decision making by the application of general principles or noncontroversial efforts is known as _____

standard operating procedures

13. Taking in only some kinds of information is known as _____

selective perception

14. According to _____, decision makers go through phases of editing and evaluation to reach a decision.

prospect theory

15. _____ are subconscious filters through which people put the information coming in about the world around them

information screens

According to Russett and Oneal, a __________ is a series of strategic interactions within an anarchic system that magnify hostility and end in war. (defensive behavior)

vicious circle

17. According to Russett and Oneal, mutually beneficial and peaceful interactions that increase over time and expand in scope constitute a __________.

virtuous circle

18. The three elements of the Kantian triangle are ____________, ____________, and ____________.

representative democracy, international law and organzation, commerece and free trade

19. According to Allison, the ________________ model is characterized by explanations of what goals a government is pursuing and how its actions were reasonable choices.

rational policy

20. According to Allison, the _________________ model is characterized by explanations in terms of internal organizational processes, standard operating procedures, programs, and outputs

organizational process

21. According to Allison, the _________________ model is characterized by the bargaining power and skill among actors positioned hierarchically within government

bureacratic process

22. According to Wiarda, which of Allison's models best explains United States policy in Mexico?

bueractic process

1. _____ is the goal of regaining territory lost to another state.

irredenticism

2. _____ is warfare by one state waged to conquer and occupy another.

total war

3. _____ hear testimony to bring to light what really happened during civil wars in exchange for offering participants asylum from punishment.

truth commissions

4. The systematic extermination of ethnic or religious groups in whole or in part is known as _____.

genocide

5. The tendency to see one's own group in favorable terms and other groups in unfavorable terms is _____.

ethnocentricism

6. _____ are toxic substances that create diseases

biological weapons

7. Weapons with a trajectory rising out of the atmosphere are known as _____.

ballistic missiles

8. _____ literally means "blow against the state

coup d'etat

9. Atomic bombs are also known as _____ weapons.

fission

10. _____ uses special radar-absorbent materials and unusual shapes in the design of aircraft, missiles, and ships to scatter enemy radar.

stealth technology

According to Posen, _________________ have considerable ability to explain and predict the probability and intensity of military conflicts among ethnic groups.

the security dilemma

12. According to Biddle, an ___________ is an ideological or nationalist war based on competition for the allegiance of a common pool of citizens who could in principle take either side.

insurgency

13. According to Biddle, a ______________features opposing groups divided along ethnic or sectarian lines

civil war

14. According to Kurth Cronin, "Analyzing terrorism as something separate from ___________ is misleading and potentially dangerous."

globalization

15. According to Gilpin, there are three theories or ideologies that explain the relationship of economics and politics that have had a pronounced influence on scholarship and political affairs: _______________, _______________, and _______________.

liberal, nationalist, Marxist

16. According to Clapp, the ____________________was supposed to give special consideration to the needs and concerns of developing countries, but is now looks as if any developing country gains will be marginal at best

WTO

1. The value of a state's imports relative to its exports is the _____.

balance of trade

2. Assuring that participants keep their commitments, that contracts are binding, and that buyers pay for goods they purchase all refer to the _____ for markets.

legal framework

3. Industrialized states give trade concessions to less-developed countries to help with their economic development through the _____.

Generalized System of Preferences

4. When states decide to reduce trade barriers and adopt a common tariff toward states that are not members of the group, they have created a(n) _____.

customs union

5. The potential free trade area in the Western hemisphere, from Alaska to Argentina, is called the _____.

Free Trade Area of the Americas

6. The free trade area comprising many countries in South America is the _____.

Southern Cone Common Market or Mercosur

7. Printing and circulating money are part of _____ policy.

monetary policy

8. _____ is the summary of all the flows of money in and out of a country

balance of payments

9. Taxation and regulation are part of _____ policy

fiscal

10. _____ are foreign currencies held by states

reserves

11. Use of the gold standard was an example of a(n) _____ exchange rate.

fixed

12. The ability of one currency to be traded or exchanged for another is known as _____.

convertibility

13. _____ is a type of investment that involves tangible goods like factories and buildings.

foreign direct investment

14. Under the principles of _____, governments engage in deficit spending to stimulate economic growth.

Keynesian economics

15. The _____ is the interest rate that the government charges when it loans money to private banks.